Numerous changes in how people live and work have been brought on by the COVID-19 pandemic. The extension of tax season is one of the biggest effects. To provide individuals more time to submit their taxes, the IRS has moved the tax filing deadline from April 15 to May 17, 2021. This action was taken to aid Americans in overcoming the pandemic’s obstacles.
The IRS stated that all taxpayers, including individuals, trusts, estates, and corporations, would be subject to the delay. Estimated tax payments for the first quarter of 2021, which were initially due on April 15th, are also subject to the delay. Taxpayers are not need to submit any paperwork or make a formal extension request in order to benefit from the automatic extension.
The start of tax season was delayed due to a number of issues. The new administration’s reforms, which have caused a delay in the approval of the Coronavirus relief package, are one of the causes. Numerous provisions in this package, including those relating to stimulus payments, unemployment benefits, and other tax credits, may have an impact on tax returns. It took extra time for the IRS to adjust its systems to account for these changes.
The backlog of tax returns from the prior year is another factor contributing to the delay. The pandemic forced the IRS to close parts of its offices, and many staff members were forced to work from home. Because of this, the processing of tax returns slowed considerably, creating a backlog of unprocessed returns.
You have until October 15th, 2021, to file your tax returns if you need extra time. You must submit Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, before the due date of May 17 in order to request an extension. You will then have an additional six months to file your tax returns as a result.
Your tax obligation for this year will depend on a number of variables. Your income, deductions, credits, and other elements all affect how much tax you owe. To determine your tax liability if you are unsure of how much you owe, you can utilize tax software or speak with a tax expert.
In conclusion, there are a number of reasons why the tax season has been delayed this year, including the new administration’s adjustments and the backlog of tax returns from the previous year. The taxpayers now have additional time to file their taxes thanks to the extension until May 17, 2021. By submitting Form 4868, you can ask for an extension up until October 15th, 2021, if you need more time. You must take into account your income, deductions, and credits in addition to other considerations in order to calculate your tax liability.